Question

Please show me steps on how to solve these problems!..

1. Isabel, a calendar-year taxpayer, uses the cash method of
accounting for her sole proprietorship. In late December she
received a $26,000 bill from her accountant for consulting services
related to her small business. Isabel can pay the $26,000 bill
anytime before January 30 of next year without penalty. Assume her
marginal tax rate is 40 percent this year and next year, and that
she can earn an after-tax rate of return of 10 percent on her
investments.

1-a. What is the after-tax cost if Isabel pays the $26,000 bill in
January?

(PV of single payment at various ARR: [0%- 1year: 0.909], [10%-2
year: 0.826])

2. Daniel is considering selling two stocks that have not fared
well over recent years. A friend recently informed Daniel that one
of his stocks has a special designation, which allows him to treat
a loss up to $30,000 on this stock as an ordinary loss rather than
the typical capital loss. Daniel figures that he has a loss of
$36,000 on each stock. If Daniel%u2019s marginal tax rate is 35
percent and he has $72,000 of other capital gains (taxed at 15
percent), what is the tax savings from the special tax
treatment?

3.
Matteo, who is single and has no dependents, was planning on
spending the weekend repairing his car. On Friday, Matteo%u2019s
employer called and offered him $200 in overtime pay if he would
agree to work over the weekend. Matteo could get his car repaired
over the weekend at Autofix for $148. If Matteo works over the
weekend, he will have to pay the $148 to have his car repaired, but
he will earn $200. Assume Matteo pays tax at a flat 15 percent
rate.(Do not
round intermediate calculations. Round your answers to 2 decimal
places.)

3-a. Considering monetary considerations only, should Matteo work
or repair the car if the $148 he must pay to have his car fixed is
not deductible? work or repair?

3-b. Given the answer in a-1
above, by how much is Matteo better or worse off?

3-c. Considering monetary considerations only,
should Matteo work or repair the car if the $148 he must pay to
have his car fixed is deductible for AGI? work or
repair?

3-d.Given the answer in b-1 above,
by how much is Matteo better or worse off?

4.Marc and Michelle are
married and earned salaries this year of $64,000 and $12,000,
respectively. In addition to their salaries, they received interest
of $350 from municipal bonds and $500 from corporate bonds. Marc
and Michelle also paid $2,500 of qualifying moving expenses, and
Marc paid alimony to a prior spouse in the amount of $1,500. Marc
and Michelle have a 10-year-old son, Matthew, who lived with them
throughout the entire year. Thus, Marc and Michelle are allowed to
claim a $1,000 child tax credit for Matthew. Marc and Michelle paid
$6,000 of expenditures that qualify as itemized deductions and they
had a total of $5,500 in federal income taxes withheld from their
paychecks during the course of the year.

4-a.What is Marc and
Michelle%u2019s gross income?

4-b.What is Marc and
Michelle%u2019s adjusted gross income?

4-c.What is the total amount of
Marc and Michelle%u2019s deductions from AGI?

4-d.What is Marc and
Michelle%u2019s taxable income?

4-e.What is Marc and
Michelle%u2019s taxes payable or refund due for the year?(Round your answer to two decimal
places.)